Golden Meditech Announces FY2018/2019 Annual Results

Growth Achieved in Revenue and Business Diversification
Synergies from Each Business Segment, Steady Expansion in New Biomedical Businesses

  1. A non-cash impairment provision of HK$378,843,000 against outstanding receivables due from Sanpower Group Limited* (三胞集團有限公司) was made, due to the further downgrading of its credit rating.
  2. An impairment loss of HK$49,603,000 in FY2017/2018 was made due to the Debt Capitalisation Agreement with Life Corporation Limited in 2017.
  3. Exchange differences are based on RMB-denominated bank loan.
  4. Excluding (1), (2) and (3).

Hong Kong, 28 June 2019 – Golden Meditech Holdings Limited (SEHK stock code: 00801) ("Golden Meditech" or the "Company", together with its subsidiaries, the "Group"), a leading integrated healthcare enterprise in China, announces today its annual results for the year ended 31 March 2019 (the "Year").

During the Year, the Group's revenue amounted to HK$315,668,000, an increase of 25.9% year-on-year, mainly attributable to the growth in the core healthcare services segment. Notably, each business unit under the core healthcare services segment has achieved satisfactory progress, among which, cells-and-tissues storage and genetic testing services businesses and hospital business have achieved significant growth, becoming the key drivers of sustainable growth in the healthcare services segment.

The adjusted loss attributable to equity shareholders of the Company was HK$320,630,000, a decrease of 49.8% year-on-year; the adjusted basic loss per share was 11.0 HK cents, decreased by 49.1% year-on-year. The decline was mainly attributable to the improved operating performances and the significant decrease in finance costs, which was partially offset by the increased share of losses of associates and joint ventures.

Mr. Feng Wen, Chairman of the Group, said, "Comprehensive and in-depth penetration of the ‘Healthy China' strategy has uplifted the healthcare industry's status in China, indicating that the big health industry is entering a prime period of development and is growing phenomenally with the help of innovative technologies. Presently, new opportunities have emerged in the Chinese healthcare industry as the government encourages breakthroughs in cell therapy regime. The Group is promoting its development in new biomedical business areas by establishing cooperation with a renowned university, Hong Kong Baptist University, to conduct cell therapy research. Additionally, we have further implemented our diversification and innovation strategies, so as to enhance the Group's overall business performance."

Healthcare Services Segment

During the Year, healthcare services revenue increased substantially by 47.7% year-on-year to HK$167,752,000, accounting for 53.1% of the Group's revenue. Among them, revenue generated from hospital business, cells and tissues storage and genetic testing services businesses and medical insurance administration business have increased by 37.2%, 1,350.4% and 28.4% to HK$147,014,000, HK$13,692,000 and HK$7,046,000, respectively, accounting for 87.6%, 8.2% and 4.2% of the healthcare services revenue.

Hospital Business

Beijing Sunbow Obstetrics & Gynecology Hospital's revenue increased by 131.6% year-on-year to HK$30,815,000 during the Year. This came on the back of sustained organic growth at existing obstetrics and gynecology department. Beijing Qinghe Hospital contributed a rental income of HK$67,040,000 to the Group during the Year, representing a growth of 63.3% year-on-year. Due to the increasing demand in high-end healthcare services market, Shanghai East International Medical Center has carried on with its relocation and expansion work during the Year. It is expected to generate better profits after the expansion.

Cells and Tissues Storage Business and Genetic Testing Services Business

Revenue from cells and tissues storage and genetic testing services businesses reached HK$13,692,000 during the Year, representing a growth of 1,350.4% year-on-year. The Group's early involvement in the pioneering cells and tissues storage and genetic testing services businesses has granted it a first-mover advantage in the biomedical and big health industry.

Medical Insurance Administration Business

Revenue from medical insurance administration business amounted to HK$7,046,000 during the Year, representing a growth of 28.4% year-on-year. Counting on its self-developed smart platform and cloud data processing center, extensive network of medical institutions as well as comprehensive domestic and international experience in the healthcare sector, the Group will further expand its large insurance company customers, so as to enhance its business performance.

Medical Devices Segment

Medical devices revenue increased by 8.1% year-on-year to HK$142,564,000, accounting for 45.2% of the Group's revenue. The increase was mainly attributable to the improved sales volume of medical device consumables as the Group continued to reinforce its marketing efforts.

Strategic Investments
Precision Medicine Business
Golden Meditech Javadi Precision Medicine Limited, a 40.0% joint venture of the Group, owns a renowned and brand-new day clinic in the United States of America that focuses on the combined treatment of chemotherapy, immunotherapy and targeted therapy for various cancers. It is believed that the expansion of the cooperation in precision medicine business will bring considerable benefits to the Group in future.

Cell Therapy Business

Cellenkos, Inc. ("Cellenkos"), a 17.45% associate of the Group, aims to develop cord blood derived T-regulatory cellular therapies in treating autoimmune diseases, and owns a stand-alone manufacturing facility in Houston that meets good manufacturing practice ("GMP") standards. Cellenkos' lead product, CK0801, has proceeded to phase I clinical trial from pre-clinical test, which will be applied to treat diseases such as bone marrow failure syndrome and Guillain-Barré syndrome.

Other Investments

ASA Asset Management Co., Ltd. ("ASA")
ASA, a 50.0% joint venture of the Group, is principally engaged in the provision of real estate asset management, investment consultancy and property arrangement services (including trust agreement and financial instrument services) and owns permits in wealth management in Japan. ASA manages offices, residences, commercial facilities as well as healthcare premises.

Life Corporation Limited ("LFC"), a 50.23% associate of the Group, and its wholly-owned subsidiary are currently developing an automated columbarium in Singapore. The construction of the automated columbarium is expected to be completed in late 2019. The management believes that once LFC's automated columbarium business commences, it will bring better returns to the Group.

Looking ahead, Mr. Feng commented, "As a leading integrated healthcare enterprise in China, we will gradually expand new businesses ranging from immunotherapy, stem cell therapy, cells and tissues storage, genetic testing to precision medicine, continue to enhance the operational efficiency and profit margin of the hospital business, and improve the profitability of the medical devices business, realising synergies from each business segment through optimisation, so as to strive for higher growth and better investment returns for the Company and its shareholders."

* The English name is for identification purpose only.

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About Golden Meditech Holdings Limited (SEHK stock code: 00801)

Golden Meditech ( is a leading integrated-healthcare enterprise in China. It is a first-mover in China, having established its dominant positions in several markets including the medical devices market and the hospital market in the healthcare industry, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, Golden Meditech will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.

For inquiries, please contact:

Investor Relations Department
Golden Meditech Holdings Limited
Tel: (852) 3605 8180
Fax: (852) 3605 8181


Information regarding the Group's reportable segments for the years ended 31 March 2019 and 2018 is set out below:

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